Gold sidelined near $1,200 ahead of Trump

The ounce troy of the precious metal is alternating gains with losses at the end of the week, currently hovering over the key $1,200 mark.

Gold attention to Trump’s speech

The yellow metal is extending its rejection from recent 2-month tops around $1,215 at the end of the week, coming down to test the $1,200 neighbourhood albeit keeping its weekly gains for the fourth consecutive time.

Bullion found quite strong resistance in the proximity of $1,220 area, where sits the 50% Fibo retracement of the 2016 up move.

The renewed and quite strong selling pressure around the greenback has been sustaining the ongoing rally in the metal, as investors have practically fully unwund the Trump-led rally in the US Dollar Index (DXY), retreating from 14-year tops seen in early January.

Looking ahead, the next risk event for Gold will come from the USD side in light of the upcoming speech by Donald Trump at his presidential inauguration.

Gold key levels

As of writing Gold is gaining 0.03% at $1,201.85 and a breakout of $1,214.70 (high Jan.18) would open the door to $1,219.05 (50% Fibo of the 2016 up move) and finally $1,228.42 (100-day sma). On the other hand, the next support is located at $1,195.80 (low Jan.19) followed by $1,182.27 (61.8% Fibo of the 2016 up move) and then 1,177.87 (55-day sma).